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Real Estate Briefing 10.Jun 2011

Posted on 10 June 2011 by Laxman |  Email |Print

Real estate markets in most of the developed world are losing steam and in some cases, starting to revert into negative territory, the Bank of Nova Scotia said Thursday.
“Increasing nervousness over global economic prospects alongside rising food and fuel prices and persistently high unemployment are keeping potential buyers on the sidelines,” the bank said in a research report………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Mary MillerThe U.S. Treasury Department said on Thursday it remains vigilant on the ongoing weakness of the U.S. housing market and will continue to boost its efforts to support recovery in the sector while winding down support of Fannie Mae and Freddie Mac.
“We recognize the necessary balance that exists between moving swiftly to reduce government’s footprint in the market and ensuring that any actions do not disrupt the still fragile housing market,” said Mary Miller, assistant secretary for financial markets at Treasury………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Federal Reserve Vice Chairman Janet Yellen said the housing market will undergo a “long, drawn-out recovery” and the Fed is working with other agencies to prevent foreclosures and clear the stock of vacant properties.
“Looking forward, I unfortunately can envision no quick or easy solutions for the problems still afflicting the housing market,” she said in a speech today in Cleveland. “Even once it begins to take hold, recovery in the housing market likely will be a long, drawn-out process.”……………………………………….Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Yale Economist Robert Shiller says the U.S. economy is at a tipping point and a Japan-like recession may be possible along with a decline of 10 to 25 percent in home prices.……………………………………….Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Robert Shiller, the economist who co- founded the S&P/Case-Shiller index of U.S. home prices, said a further decline in property values of 10 percent to 25 percent in the next five years “wouldn’t surprise me at all.”
“There’s no precedent for this statistically, so no way to predict,” Shiller said today at a conference hosted by Standard & Poor’s in New York………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Robert Shiller told Reuters that he would not be surprised to see home prices fall another 10 to 25%. If Shiller is right in his prediction, that may be extremely bullish for the U.S. dollar as deflation ravages the economy.
Deflation means an appreciating dollar. Though investors may see falling housing prices as a negative for future economic growth in the U.S., and therefore the U.S. dollar, the dollar has the unique advantage of being the world’s reserve currency………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

The values on the country’s most modestly priced homes took a harder hit than their upscale counterparts during the downturn, according to a report released Monday from Harvard University’s Joint Center for Housing Studies.
Houses priced at the low end of housing markets typically fell about three times more than those at the upper end in the last year, according to the Center’s annual report, “The State of the Nation’s Housing.” High-end homes are those with original sales prices in the most expensive one-third of all homes in a market; low-end homes are those in the bottom third………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Falling real estate prices are eating away at home equity. The percentage of their homes that Americans own is near its lowest point since World War II, the Federal Reserve said Thursday. The average homeowner now has 38 percent equity, down from 61 percent a decade ago.
The latest bleak snapshot of the housing market came as mortgage rates hit a new a low for the year, falling below 4.5 percent for a 30-year fixed loan. But even alluring rates have failed to deliver any lift to the depressed housing industry……………………………………….Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Household wealth in the U.S. climbed by $943 billion in the first quarter of 2011 as rising share prices outstripped declines in home values.
Net worth for households and non-profit groups increased at a 6.8 percent annual pace to $58.1 trillion after rising at a 19 percent pace in the previous three months, the Federal Reserve said today in its flow of funds report from Washington. American households also cut debt for a 12th consecutive quarter………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

San Francisco’s luxury home market is showing signs of a turnaround, according to prominent Bay Area Realtor Cece Doricko, who specializes in Forest Hill, Pacific Heights, Cow Hollow and St. Francis Wood, CA real estate. Citing figures from Coldwell Banker’s latest San Francisco Luxury Market Report, Doricko reports a 13.6 percent increase in the number of home sales in the first quarter of 2011 as compared to that of the same period last year.
“Buyers of Pacific Heights luxury real estate and other luxury properties in San Francisco are starting to make their presence felt once again,” says Doricko, “and it’s not surprising why. Homes in these kinds of neighborhoods have always been sought-after and now there are quite a few that are priced lower than they have been for some time. It’s no wonder, then, that buyers who have the means are not letting these opportunities pass them by.” (Press Release)

Posted on 10 June 2011 by Laxman |  Email |Print

A Scotia Economics report says Canada’s housing market isn’t the only one losing momentum — residential real-estate markets across the developed world are dropping off.
Scotiabank’s latest real-estate outlook says the Canadian market is in relatively healthy shape compared to others. Senior economist Adrienne Warren says while the country’s real-estate market is cooling, it is being supported by steady job creation and attractive borrowing costs………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Very soon Cubans will be authorized to buy and sell housing, which is an old aspiration of people. In fact, this was among the five most repeated demands raised by islanders during the national discussion held back in 2007.
The reform guidelines approved in the Party Congress (April 2011) don’t explain — nor are they required to — how that transformation will move forward, therefore some voices now fear the social and economic consequences that might arise………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Pension funds considering a move into the European property market should act with caution, Hatfield Philips International (HPI) has warned.
HPI, said with parts of the commercial property market seeing a recovery, and those lenders who were active during the boom now constrained, or no longer in business, many pension funds have been increasingly significant investors in this sector………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

U.K. house prices remained little changed in May as concerns that the economic recovery may falter damped buyer confidence, research company Acadametrics Ltd. and LSL Property Services Plc said.
The average price of a home in England and Wales was 223,971 pounds ($366,484), 20 pounds more than the April average, the groups estimated in an e-mailed report in London today. From a year earlier, values were up 1.1 percent………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Increased tenant demand and low levels of rental property coming onto the market pushed rents higher in the three months to April, according to the latest RICS Residential Lettings Survey.
The RICS said that 42 per cent more surveyors reported rents rose rather than fell in the three months to April. It added that rents in some areas have now risen so sharply that previously affordable homes are now unattainable to many, as an increasing number of renters are priced out of the market………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Despite a number of indices suggesting that prices are falling and oversupply is having a negative impact on the sector, one firm has offered a positive outlook for the Spanish property market.
“In Spain things are looking very bright,” Dr Dennis Coote, founder of The Hampshire & Home Counties Property Networking Club, said………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Listed property was the best-performing asset class for the €5bn Dutch pension scheme for chemical giant DSM in 2010, when it returned close to 30%.
In its annual report, published this week, the fund attributed returns of over 38% in North America, 31% in Asia and 19.4% in Europe to a stabilising world economy and worries about future inflation………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Residential property prices in Dubai, the worst-performing market in the Middle East for the past three years, haven’t yet benefited from political turmoil in other parts of the region, Deutsche Bank AG said.
Home values declined 1.2 percent in May from the previous month and rents fell by 1 percent, according to Nabil Ahmed and Athmane Benzerroug, two analysts at the bank. Apartment prices dropped 1.3 percent and villas lost 1 percent………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

HSBC Holdings Plc (HSBA) is making it easier for homebuyers to get loans in Dubai as one of the world’s worst-performing real estate markets shows signs of improvement.
HSBC Bank Middle East Ltd., the Dubai-based unit of Europe’s biggest bank, reduced interest rates on 25-year mortgages by 76 basis points to 5.49 percent, said James Pearson, the 37-year-old head of assets and liabilities. The company also lowered its down-payment requirements………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Wall Street Journal ran this story that residential property prices in 9 major cities are already falling. According to Dragonomics, home prices in mine major cities tracked by Dragonomics recoded a 4.9% yoy drop in April. So one might declare that the story is finished.
Although it can be taken as a good news for the bearish camp, this data point somewhat contradicts other data sources………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

Minister for National Development, Khaw Boon Wan, took to his blog on Thursday to express his concerns over the private property market. Noting the rise in property prices in recent years, Mr Khaw warned that ’sharp property price increases cannot go on forever.’
“Those who borrow to go into properties thinking that prices will continue to rise, will be thrown into financial hardship should prices drop and banks start calling. The world witnessed this barely 2 years ago when the US property market crashed and we all suffered from it,” wrote Mr Khaw………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

The Australian property market, while over priced, is not experiencing an investment bubble because the key ingredients to this phenomenon are absent, according to a leading economist.
“Housing credit rates have slowed right down, only at the moment they’ve grown to about 6 per cent. Also less than 40 per cent of housing finance today is going to investors compared to more than 50 per cent several years ago,” AMP Capital Investors chief economist Shane Oliver said………………………………………..Full Article: Source

Posted on 10 June 2011 by Laxman |  Email |Print

After some encouraging signs of revival last year, residential real estate markets in much of the developed world are losing momentum — or in some cases, even reversing course, according to the latest Global Real Estate Trends report released today by Scotia Economics.
“Increasing nervousness over global economic prospects alongside rising food and gas prices and persistently high unemployment are keeping potential buyers on the sidelines despite highly accommodative monetary policy,” said Adrienne Warren, Senior Economist and Real Estate Specialist, Scotia Economics. “A lingering oversupply of housing and/or still tight credit conditions are reinforcing the downward pressure on sales and prices in a number of markets globally.” (Press Release)

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